He obviously has a lot of faith in Simon Rushton, who was one of the three most senior executives at MinRes for over a decade during its high growth phase. At MinRex he had a leadership role in building one of the most successful mine services businesses in Australia. Macro has also just hired a senior project manager from Rio Tinto and so are putting together a very strong team for this venture.
The presentation has a very clear target of getting $300m of contract business by the end of this year. They have made the strategic decision to pivot away from exploration to focus to building up a new mine business, which is where Rushton's skill set is. He is extremely well-connected and experienced in that whole business sector in WA, including handling at the ports. The presentation says there is going to be a particularly strong emphasis with working with Traditional Owner groups.
If they get just one tenth on their $300m target in new contracts, the stock will be worth a lot more than it is now, both on a revenue multiple and also as a new high growth name. They are obviously in the process of putting the building blocks in place with new partnerships and hires. I see that Shaun Tilley just yesterday put another $1m into the company. He is the MD of one of the largest mining fleet operators in WA. This is a top team. It is also backed by some of the smartest market operators in Australia, who are on the board. Directors and management now own 40%of the fd cap of this company.
Rushton obviously likes to work fast. I reckon they will get their first new contracts signed by the end of the quarter and then start building and flowing cash through the year. There is a lot of interest in this stock from some very experienced investors in the mining sector.
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